ERICSSON (LM) TEL-SP ADR (ERIC) Fundamental Analysis & Valuation

NASDAQ:ERIC • US2948216088

Current stock price

12.03 USD
+0.15 (+1.26%)
At close:
12 USD
-0.03 (-0.25%)
After Hours:

This ERIC fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. ERIC Profitability Analysis

1.1 Basic Checks

  • In the past year ERIC was profitable.
  • In the past year ERIC had a positive cash flow from operations.
  • ERIC had positive earnings in 4 of the past 5 years.
  • In the past 5 years ERIC always reported a positive cash flow from operatings.
ERIC Yearly Net Income VS EBIT VS OCF VS FCFERIC Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20B -20B 40B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 10.18%, ERIC belongs to the top of the industry, outperforming 85.11% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 25.95%, ERIC belongs to the top of the industry, outperforming 87.23% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 15.64%, ERIC belongs to the top of the industry, outperforming 87.23% of the companies in the same industry.
  • ERIC had an Average Return On Invested Capital over the past 3 years of 11.82%. This is in line with the industry average of 10.41%.
  • The 3 year average ROIC (11.82%) for ERIC is below the current ROIC(15.64%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 10.18%
ROE 25.95%
ROIC 15.64%
ROA(3y)0.43%
ROA(5y)2.81%
ROE(3y)-0.28%
ROE(5y)6.78%
ROIC(3y)11.82%
ROIC(5y)12.32%
ERIC Yearly ROA, ROE, ROICERIC Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 -20 -30

1.3 Margins

  • ERIC has a better Profit Margin (12.01%) than 82.98% of its industry peers.
  • ERIC's Profit Margin has improved in the last couple of years.
  • With an excellent Operating Margin value of 14.08%, ERIC belongs to the best of the industry, outperforming 82.98% of the companies in the same industry.
  • In the last couple of years the Operating Margin of ERIC has grown nicely.
  • ERIC has a Gross Margin of 48.14%. This is comparable to the rest of the industry: ERIC outperforms 57.45% of its industry peers.
  • In the last couple of years the Gross Margin of ERIC has grown nicely.
Industry RankSector Rank
OM 14.08%
PM (TTM) 12.01%
GM 48.14%
OM growth 3Y7.54%
OM growth 5Y1.88%
PM growth 3Y20.32%
PM growth 5Y9.81%
GM growth 3Y4.83%
GM growth 5Y3.45%
ERIC Yearly Profit, Operating, Gross MarginsERIC Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40

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5

2. ERIC Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ERIC is creating value.
  • Compared to 1 year ago, ERIC has about the same amount of shares outstanding.
  • Compared to 5 years ago, ERIC has about the same amount of shares outstanding.
  • Compared to 1 year ago, ERIC has an improved debt to assets ratio.
ERIC Yearly Shares OutstandingERIC Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B
ERIC Yearly Total Debt VS Total AssetsERIC Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100B 200B 300B

2.2 Solvency

  • ERIC has a debt to FCF ratio of 1.38. This is a very positive value and a sign of high solvency as it would only need 1.38 years to pay back of all of its debts.
  • The Debt to FCF ratio of ERIC (1.38) is better than 65.96% of its industry peers.
  • ERIC has a Debt/Equity ratio of 0.32. This is a healthy value indicating a solid balance between debt and equity.
  • With a Debt to Equity ratio value of 0.32, ERIC is not doing good in the industry: 70.21% of the companies in the same industry are doing better.
  • Even though the debt/equity ratio score it not favorable for ERIC, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.38
Altman-Z N/A
ROIC/WACC2.03
WACC7.72%
ERIC Yearly LT Debt VS Equity VS FCFERIC Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20B 40B 60B 80B 100B

2.3 Liquidity

  • A Current Ratio of 1.29 indicates that ERIC should not have too much problems paying its short term obligations.
  • ERIC has a Current ratio of 1.29. This is amonst the worse of the industry: ERIC underperforms 82.98% of its industry peers.
  • A Quick Ratio of 1.08 indicates that ERIC should not have too much problems paying its short term obligations.
  • The Quick ratio of ERIC (1.08) is worse than 80.85% of its industry peers.
Industry RankSector Rank
Current Ratio 1.29
Quick Ratio 1.08
ERIC Yearly Current Assets VS Current LiabilitesERIC Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50B 100B 150B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. ERIC Growth Analysis

3.1 Past

  • ERIC shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 440.40%, which is quite impressive.
  • Measured over the past years, ERIC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.62% on average per year.
  • ERIC shows a decrease in Revenue. In the last year, the revenue decreased by -4.52%.
  • The Revenue has been growing slightly by 0.37% on average over the past years.
EPS 1Y (TTM)440.4%
EPS 3Y13.71%
EPS 5Y9.62%
EPS Q2Q%36.79%
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y-4.48%
Revenue growth 5Y0.37%
Sales Q2Q%-4.98%

3.2 Future

  • The Earnings Per Share is expected to decrease by -8.08% on average over the next years.
  • The Revenue is expected to grow by 0.59% on average over the next years.
EPS Next Y-23.81%
EPS Next 2Y-9.78%
EPS Next 3Y-4.8%
EPS Next 5Y-8.08%
Revenue Next Year-1.63%
Revenue Next 2Y0.03%
Revenue Next 3Y0.89%
Revenue Next 5Y0.59%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
ERIC Yearly Revenue VS EstimatesERIC Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 50B 100B 150B 200B 250B
ERIC Yearly EPS VS EstimatesERIC Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 2 -2 4 6 8

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7

4. ERIC Valuation Analysis

4.1 Price/Earnings Ratio

  • ERIC is valuated correctly with a Price/Earnings ratio of 12.03.
  • Compared to the rest of the industry, the Price/Earnings ratio of ERIC indicates a rather cheap valuation: ERIC is cheaper than 93.62% of the companies listed in the same industry.
  • ERIC's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.86.
  • ERIC is valuated correctly with a Price/Forward Earnings ratio of 15.79.
  • Based on the Price/Forward Earnings ratio, ERIC is valued cheaply inside the industry as 89.36% of the companies are valued more expensively.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 37.39, ERIC is valued rather cheaply.
Industry RankSector Rank
PE 12.03
Fwd PE 15.79
ERIC Price Earnings VS Forward Price EarningsERIC Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ERIC is valued cheaply inside the industry as 89.36% of the companies are valued more expensively.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of ERIC indicates a rather cheap valuation: ERIC is cheaper than 85.11% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 12.71
EV/EBITDA 7.99
ERIC Per share dataERIC EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

  • The excellent profitability rating of ERIC may justify a higher PE ratio.
  • ERIC's earnings are expected to decrease with -4.80% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.25
EPS Next 2Y-9.78%
EPS Next 3Y-4.8%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. ERIC Dividend Analysis

5.1 Amount

  • ERIC has a Yearly Dividend Yield of 2.70%. Purely for dividend investing, there may be better candidates out there.
  • Compared to an average industry Dividend Yield of 1.89, ERIC pays a better dividend. On top of this ERIC pays more dividend than 87.23% of the companies listed in the same industry.
  • ERIC's Dividend Yield is a higher than the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 2.7%

5.2 History

  • On average, the dividend of ERIC grows each year by 13.68%, which is quite nice.
  • ERIC has paid a dividend for at least 10 years, which is a reliable track record.
  • As ERIC did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)13.68%
Div Incr Years6
Div Non Decr Years6
ERIC Yearly Dividends per shareERIC Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.1 0.2 0.3 0.4

5.3 Sustainability

  • ERIC pays out 33.41% of its income as dividend. This is a sustainable payout ratio.
DP33.41%
EPS Next 2Y-9.78%
EPS Next 3Y-4.8%
ERIC Yearly Income VS Free CF VS DividendERIC Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20B -20B 40B
ERIC Dividend Payout.ERIC Dividend Payout, showing the Payout Ratio.ERIC Dividend Payout.PayoutRetained Earnings

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ERIC Fundamentals: All Metrics, Ratios and Statistics

ERICSSON (LM) TEL-SP ADR

NASDAQ:ERIC (4/13/2026, 4:30:02 PM)

After market: 12 -0.03 (-0.25%)

12.03

+0.15 (+1.26%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)01-23
Earnings (Next)04-17
Inst Owners58.35%
Inst Owner Change0.01%
Ins Owners0.07%
Ins Owner ChangeN/A
Market Cap40.10B
Revenue(TTM)236.68B
Net Income(TTM)28.43B
Analysts56.55
Price Target10.39 (-13.63%)
Short Float %1.4%
Short Ratio4.01
Dividend
Industry RankSector Rank
Dividend Yield 2.7%
Yearly Dividend0.31
Dividend Growth(5Y)13.68%
DP33.41%
Div Incr Years6
Div Non Decr Years6
Ex-Date04-02
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)53.68%
Min EPS beat(2)29.76%
Max EPS beat(2)77.6%
EPS beat(4)4
Avg EPS beat(4)44.45%
Min EPS beat(4)20.62%
Max EPS beat(4)77.6%
EPS beat(8)6
Avg EPS beat(8)-30.16%
EPS beat(12)10
Avg EPS beat(12)-8.61%
EPS beat(16)10
Avg EPS beat(16)-9.98%
Revenue beat(2)1
Avg Revenue beat(2)1.05%
Min Revenue beat(2)-0.88%
Max Revenue beat(2)2.98%
Revenue beat(4)1
Avg Revenue beat(4)-1.6%
Min Revenue beat(4)-6.39%
Max Revenue beat(4)2.98%
Revenue beat(8)2
Avg Revenue beat(8)-1.04%
Revenue beat(12)3
Avg Revenue beat(12)-1.34%
Revenue beat(16)7
Avg Revenue beat(16)-0.7%
PT rev (1m)1.99%
PT rev (3m)10.93%
EPS NQ rev (1m)1.15%
EPS NQ rev (3m)5.69%
EPS NY rev (1m)1.08%
EPS NY rev (3m)5.89%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-1.25%
Valuation
Industry RankSector Rank
PE 12.03
Fwd PE 15.79
P/S 1.57
P/FCF 12.71
P/OCF 11.26
P/B 3.39
P/tB 6.98
EV/EBITDA 7.99
EPS(TTM)1
EY8.31%
EPS(NY)0.76
Fwd EY6.33%
FCF(TTM)0.95
FCFY7.87%
OCF(TTM)1.07
OCFY8.88%
SpS7.67
BVpS3.55
TBVpS1.72
PEG (NY)N/A
PEG (5Y)1.25
Graham Number8.94
Profitability
Industry RankSector Rank
ROA 10.18%
ROE 25.95%
ROCE 19.8%
ROIC 15.64%
ROICexc 23.58%
ROICexgc 47.63%
OM 14.08%
PM (TTM) 12.01%
GM 48.14%
FCFM 12.33%
ROA(3y)0.43%
ROA(5y)2.81%
ROE(3y)-0.28%
ROE(5y)6.78%
ROIC(3y)11.82%
ROIC(5y)12.32%
ROICexc(3y)17.47%
ROICexc(5y)18.15%
ROICexgc(3y)43.71%
ROICexgc(5y)45.38%
ROCE(3y)14.96%
ROCE(5y)15.6%
ROICexgc growth 3Y-6.32%
ROICexgc growth 5Y4.87%
ROICexc growth 3Y14.91%
ROICexc growth 5Y1.28%
OM growth 3Y7.54%
OM growth 5Y1.88%
PM growth 3Y20.32%
PM growth 5Y9.81%
GM growth 3Y4.83%
GM growth 5Y3.45%
F-Score7
Asset Turnover0.85
Health
Industry RankSector Rank
Debt/Equity 0.32
Debt/FCF 1.38
Debt/EBITDA 0.83
Cap/Depr 42.29%
Cap/Sales 1.59%
Interest Coverage 15.11
Cash Conversion 78.04%
Profit Quality 102.67%
Current Ratio 1.29
Quick Ratio 1.08
Altman-Z N/A
F-Score7
WACC7.72%
ROIC/WACC2.03
Cap/Depr(3y)41.44%
Cap/Depr(5y)47.37%
Cap/Sales(3y)1.71%
Cap/Sales(5y)1.88%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)440.4%
EPS 3Y13.71%
EPS 5Y9.62%
EPS Q2Q%36.79%
EPS Next Y-23.81%
EPS Next 2Y-9.78%
EPS Next 3Y-4.8%
EPS Next 5Y-8.08%
Revenue 1Y (TTM)-4.52%
Revenue growth 3Y-4.48%
Revenue growth 5Y0.37%
Sales Q2Q%-4.98%
Revenue Next Year-1.63%
Revenue Next 2Y0.03%
Revenue Next 3Y0.89%
Revenue Next 5Y0.59%
EBIT growth 1Y45.04%
EBIT growth 3Y2.72%
EBIT growth 5Y2.26%
EBIT Next Year7.58%
EBIT Next 3Y5.03%
EBIT Next 5Y2.67%
FCF growth 1Y-31.52%
FCF growth 3Y5.77%
FCF growth 5Y4.32%
OCF growth 1Y-28.77%
OCF growth 3Y2.21%
OCF growth 5Y2.64%

ERICSSON (LM) TEL-SP ADR / ERIC Fundamental Analysis FAQ

What is the fundamental rating for ERIC stock?

ChartMill assigns a fundamental rating of 6 / 10 to ERIC.


What is the valuation status of ERICSSON (LM) TEL-SP ADR (ERIC) stock?

ChartMill assigns a valuation rating of 7 / 10 to ERICSSON (LM) TEL-SP ADR (ERIC). This can be considered as Undervalued.


Can you provide the profitability details for ERICSSON (LM) TEL-SP ADR?

ERICSSON (LM) TEL-SP ADR (ERIC) has a profitability rating of 8 / 10.


What is the valuation of ERICSSON (LM) TEL-SP ADR based on its PE and PB ratios?

The Price/Earnings (PE) ratio for ERICSSON (LM) TEL-SP ADR (ERIC) is 12.03 and the Price/Book (PB) ratio is 3.39.


How sustainable is the dividend of ERICSSON (LM) TEL-SP ADR (ERIC) stock?

The dividend rating of ERICSSON (LM) TEL-SP ADR (ERIC) is 7 / 10 and the dividend payout ratio is 33.41%.